Asian hot-rolled coil prices dropped to a four-year low Aug. 12 amid persistently weak demand and a bearish short-term outlook, sources said.
Platts assessed SS400 HRC of 3 mm thickness down $9/mt from Aug. 8 at $471/mt FOB China on Aug. 12. The same grade of coil was down $8/mt at $478/mt CFR Southeast Asia over the same period.
The Platts SS400 FOB China assessment last fell to $470/mt FOB levels on July 23, 2020, when the pandemic caused global disruptions.
“The offers I heard today are the lowest I heard in a long time. The market is really getting weaker by the day,” a Vietnam-based trader said.
Export offers fell to $472-$485/mt FOB China, down $13/mt from the best offer on Aug. 8. A northern China mill was heard to have sold to Taiwan at $471/mt FOB Jingtang, which sources deemed to be a “reasonable” price considering the mill’s offer at $472/mt FOB.
The most actively-traded October contract on the Shanghai Futures Exchange closed at Yuan 3,374/mt Aug. 12, down Yuan 77/mt, or 2.2% from the early closing price on Aug. 8.
Platts assessed the spot price of Q235B 5.75 mm HRC at Yuan 3,300/mt ($459/mt) ex-stock Shanghai on Aug. 12, including value added tax, down Yuan 100/mt from Aug. 8.
The market outlook was bearish, with most participants expecting prices to slide further in the short term. “$450/mt [FOB China] would be a workable price soon and we
are not sure if prices would manage to stabilize at that level,” said a southern China-based trader.
“Prices probably have to fall further. The main issue is still weak demand. No matter if it’s production cut or interest rate cutdown, the rebounding effect will just be short-lived,” said a Vietnam-based mill source.
In Vietnam, offers for Q235 and Q195 grades have fallen to $480-$485/mt CFR from $488-$491 CFR Aug. 8. A deal for Q195 grade was concluded at $485/mt CFR Vietnam Aug. 9.
A sale of Q235 grade was done at $480/mt CFR Vietnam Aug. 10, market sources reported, adding that the buying idea has fallen to under those levels after offers fell to $480/mt CFR levels.
Offers for Chinese SAE1006 50% 2 mm thick coils fell to $500/ mt CFR, down $10/mt from Aug. 8.
Platts assessed SAE1006 HRC down $5/mt on the day at $495/mt FOB China on Aug. 12. Platts assessed the same grade of coil down $10/mt over the same period at $492/mt CFR Southeast Asia.
